Motel owners accused of state tax fraud

The owners of several budget motels in the Chicago area, including four in the Southland, have been charged with defrauding the state of $354,000 by underreporting their income from the properties, the Illinois Attorney General's office announced Tuesday.

Shashank Bhatt, 66, of Oak Brook, and Kishore Chugh, 63, of Burr Ridge, were arrested in a sweep designed to crack down on violations of the state's Hotel Operators' Occupation Tax and were charged with failing to file a tax return and wire fraud, according to the attorney general's office. Revenue from the tax applied on room rentals is used to finance tourism efforts in Illinois.

The attorney general's office reported that in the Southland, the two men operate the D-Lux Budget Motel in Alsip, the Presidential Inn in Matteson, Miami Inn & Suites in Oak Lawn and Palos Motel in Worth.

It said Bhatt and Chugh filed a fraudulent tax return, underreporting about $3.5 million in revenue from the motels.

Bail was set at $100,000 for each man, and each posted 10 percent to gain their release, the office reported. Their next court date is Jan. 11.

A version of this article appeared in print on December 23, 2015, in the News section of the Chicago Tribune with the headline "Motel owners accused of state tax fraud - Attorney general's office: Charges involve Alsip, Matteson, Oak Lawn, Worth businesses" —
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